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Wealthfront

Wednesday, 15 May 2013 | 8:25 AM ET
Wealthfront Disrupts Traditional Brokerage Model
Wednesday, 15 May 2013 | 2:00 PM ET
The financial services sector is disrupting the status quo, reports CNBC's Julia Boorstin. And Andrew Rachleff, Wealthfront president & CEO, explains how his company can offer clients the same services as big banks but at a lower cost.

What
Software-based investment management.

Disrupting
Traditional brokerage companies, private banks and wealth managers.

Source: Wealthfront

Headquarters: Palo Alto, Calif.
CEO: Andrew Rachleff
Year Founded: 2008
Number of Employees: 22
Funding: $30.5 million
Key Investors: Index Ventures, Greylock Partners, DAG Ventures and The Social + Capital Partnership

Vital Stats

  • Assets have grown 130 percent since beginning of 2013
  • Total assets now at $240 million (up from $100 million at year-end 2012)
  • More than 100 Facebook employees invest through Wealthfront
  • The CEO of retail start-up Bonobos, Andy Dunn, is a client
  • The Wealthfront executive team has Silicon Valley (CEO Rachleff co-founded Benchmark Capital), social media (Chief Operating Officer Adam Nash came from Greylock Partners and LinkedIn) and Wall Street expertise:
  • Burton Malkiel, renowned economist and author of the book "A Random Walk Down Wall Street," is chief investment officer
  • Clients receive up to $10,000 in assets managed for free
  • Clients receive an additional $5,000 in free assets under management for each friend referral

On Disruption

"A disruptive product addresses a market that previously couldn’t be served—a new-market disruption—or it offers a simpler, cheaper or more convenient alternative to an existing product—a low-end disruption. It is uneconomic for an incumbent to compete with either type of product, which is why it is such an important advantage." -Andrew Rachleff, President and CEO
Disruptors Providing Next-Gen Financial Services
CircleUp, Kickstarter, Lending Club, Square, Wealthfront -- Companies recognized as CNBC Disruptors because of the way they are changing how we spend, fund, transfer money.

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Contact CNBC Disruptors

  • Email: cnbcdisruptor@nbcuni.com

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